Market is overbought

Discussion in 'Trading' started by vince111, May 14, 2008.

  1. This recent push up in the SPX over the past 3 days is of no real surprise to those that trade "technically".

    The move down from the May 2nd highs simply corrected a 38.2% fib and bounced off of the 21-day MA.

    This minor "pullback" also corresponded to a 23.6% fib level on the entire move up from the March 17th lows.

    In otherwords, nothing unusual at all.
    Basic textbook stuff.
     
    #21     May 14, 2008
  2. So, what's going to happen in the next 3 days, according to the same textbook?
     
    #22     May 14, 2008
  3. MAESTRO

    MAESTRO

    I could not have said it better! You got it!
     
    #23     May 14, 2008
  4. It gets more overvalued
     
    #24     May 14, 2008
  5. MAESTRO

    MAESTRO

    According to FIBs it is going to 1380.
     
    #25     May 14, 2008
  6. MAESTRO

    MAESTRO

    Let the diarrhea begin! :cool:
     
    #26     May 14, 2008
  7. One commentator I actually listen to said

    "I spoke to 100 money managers and not a single one was bearish on oil, not one. You know what that means."

    Take it for what it's worth but oil feals very topped out at this point. The very day gold had topped at 1050ish or whatever it was, I picked up a paper and front page was a guy holding a gold bar with the title "Welcome to the new gold rush". So look out for those front page splash headlines of "Welcome to the new oil rush" lol.

    I understand this conversation is about S&P topping etc but I think S&P can still go some ways further. I brought up the oil thing because I trade a lot of oil stocks and the TSX is heavily weighted in energy and it seems that all the markets are 100% focused on oil at this point and trade around that premise.
     
    #27     May 14, 2008